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State Representative Denny McNamara
100 Rev. Dr. Martin Luther King Jr. Blvd.
651-296-3135
For more information contact: Jason Wenisch 651-296-2317
NEWS COLUMN
NEWS AND VIEWS WITH REP. DENNY McNAMARA
The big debate from the State Capitol remains how we are going to solve Minnesota’s projected budget deficit.
Sadly, the deficit numbers have not improved. State economists recently told the Legislature that it must eliminate a $4.57 billion budget deficit for Fiscal Year 2010-11.
But if we’re really going to tell the public the truth, we would tell them that we really need to eliminate $6.393 billion, which is the actual total of Minnesota’s deficit if you eliminate the one-time federal stimulus funding that will eventually be utilized. The $6.393 billion figure is actually $1.5 billion worse than the previous projection three months ago.
In addition, Governor Pawlenty recently signed a new law that says our next budget - Fiscal Year 2012-13 - also must be balanced. State economists project Minnesota to face a $5 billion deficit during that budget cycle, which means lawmakers must eliminate two projected budget shortfalls totaling $11 billion by the time the Legislature adjourns in May.
On Friday, Minnesota Senate Democrats discussed how they want to solve this financial crisis. First, they likely want to create $4 billion in new revenues by raising yet-to-be determined taxes over the next four years. The Senate Tax chairman said the tax hikes would likely not come from extending the sales tax to clothing and services.
The Senate majority would also cut state government spending by $5.1billion over the next four years. This amounts to a 7% cut to every program. For E-12 education, this means a nearly $2 billion cut in spending. Health and human services would see a $1.6 billion cut, and public safety would receive nearly $160 million less.
As the budget setting process begins, I will be pushing for leadership to adopt policies that reform the way government spends its money. State expenditures continue to cause our budget problems, as this latest forecast proved. Tax collections are down $1.16 billion while state spending is increasing by $152 million.
We have this revenue problem because people are not working, and because many of those who have jobs are seeing reduced wages and therefore are only buying the things they need to survive. This shortfall isn’t happening because we’re not taxing citizens enough.
As we’ve seen locally with 3M, Smead, and other small employers, these folks are making significant cuts to salaries, their overall business structure, and in some cases jobs in order to keep their doors open. Inflicting further pain on these businesses and their employees through increased taxes is only going to deepen the wound.
There are two solutions to this economic crisis. The first is to get people working, not to overburden the taxpayers that are struggling to make ends meet. The second is to reform the way government spends its money, because Minnesota’s recent habits of overspending show no signs of slowing down.
How do you feel about our budget deficit, and the Senate idea for solving our budget shortfall? I value your input, and encourage you to contact me at any time. Call me at 651-296-3135 or send me an email at rep.denny.mcnamara@house.mn and share your opinions.
House Democrats are expected to outline their budget proposals in the coming days. I’ll be sure to keep you updated once that plan is made available.
News Items
- NEWS AND VIEWS WITH REP. DENNY McNAMARA - (Posted: 2012-05-09 00:00:00)
- NEWS AND VIEWS WITH REP. DENNY McNAMARA - (Posted: 2012-05-02 00:00:00)
- NEWS AND VIEWS WITH REP. DENNY McNAMARA - (Posted: 2012-03-23 00:00:00)
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